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FEE briefing paper on accrual accounting

  • FEE (Federation of European Accountants - Fédération des Experts-comptables Européens) (lt green) Image

07 Apr 2016

The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has prepared a short briefing paper highlighting the key benefits of adopting accrual accounting and its contribution to governments' financial decision-making process.

FEE notes that many member states of the European Union have already embraced accrual accounting but the discussion on its potential contribution to improving transparency and accountability is still ongoing. Currently, there are no harmonised EU-wide rules, but the European Commission is working on this and plans to issue European Public Sector Accounting Standards (EPSAS) within the next 4 years. In the meantime, the European Commission is encouraging member states to switch to accrual accounting and potentially use International Public Sector Accounting Standards (IPSAS).

Among the benefits of accrual accounting FEE notes the following:

  • using assets effectively;
  • managing liabilities;
  • managing performance;
  • addressing the citizens’ right to know;
  • improved transparency;
  • improved comparability; and
  • saving for future generations.

Please click to access the briefing paper on the FEE website.

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